Early stage innovation companies (ESIC) looking for investment can verify their ESIC status with an ATO private binding ruling. With a private ruling you can go into capital raising discussions confident that your potential investor can qualify for significant tax incentives.

To encourage investment in startups, the ATO provides generous tax incentives to qualifying investors who purchase new shares in verified early stage innovation companies. These incentives include a reduction in tax payable and Capital Gains Tax exemptions.

To qualify as an ESIC, your company will need to complete and pass two self-assessment tests - the early stage test and the innovation test. To avoid the risk of incorrect ESIC self-assessment, which may result in the investor losing their tax benefits, you can request a private ruling from the ATO to verify your ESIC status. Nifty Grants and PwC offer an easy and affordable way to do so.

Powered by the tax specialism of PwC Australia with a high ESIC private ruling success rate.

Simple fixed pricing

One off application fee of $4,500 plus GST, so you know exactly what you're up for. Free to try, payment on submission to the ATO.

Free eligibility check

Use our free in-form eligibility check to assess your ESIC status.

Amazing support

Visit our Help Centre or get in touch for online or phone support with an ESIC specialist.

Complete transparency

One of the great benefits of our platform is transparency - we give you the control over your claim at all times, from beginning to end.

Who is eligible

Registered / incorporated Australian company

With $1 million or less total expenses in the last income year

Who in the last income year also had income of $200,000 or less

And are not listed on any local or foreign stock exchange

What you'll need

Details of incorporation

Annual expense statements

Previous years tax return

Knowledge of innovation

Investor memorandium

What you'll get

Free eligibility assessment

Chat support

PwC guidance on application

Application preparation by PwC

Submission of private ruling to ATO

Pricing

There are no surprises here! Our pricing is simple with a one-off fee of $4,500 plus GST for an ATO private binding ruling. Free to try, payment on submission to the ATO.

Have a question? Contact us to discuss

Frequently asked questions

I pass the 100 point test do I need a private ruling?

A private ruling is generally only sought for a ruling under the principles based test. However for additional certainty we can still discuss a ruling for the 100 point test if needed. Reach out to our support team below to find out more.

What is an ATO private ruling?

A private ruling is binding advice that sets out how a tax law applies to you in relation to a specific scheme or circumstance.

For ESIC status, the ATO usually make a private ruling in response to an application by, or on behalf of, a particular company Each private ruling is specific to that company, and can't be relied on by another entity.

Why should my company get a private ruling?

As the ESIC tests are meant to be objective and self-assessed a company should get a PBR if they need ATO verification of their ESIC status. This is particularly helpful for investment discussions.

Note that a PBR is based on the facts provided to the ATO and if facts change this could result in a different outcome of the ruling.

I'm an investor, can I do this?

Yes, a investor can get an application underway with a company. However, the application relates only to the facts a company has provided in their request.

Investors should also ensure they meet the criteria for investor tax incentives. If you are an investor who wants to know more, please contact us using the help link in the bottom right.

What's the difference between the principle based test and 100 point test

To qualify as an ESIC, you can meet the 100 point test where the ATO takes certain factors into account to fast track qualification including previous R&D Tax claims, participation in a qualifying accelerator program and more. If you do not pass the 100 point test, there is a second test called the principles based test which you may qualify for. This test asks more subjective questions around the type of business you are in and the activities you are undertaking.